The Zambia Institute for Policy Analysis and Research (ZIPAR) has welcomed the Government’s 2017 budget, which it says is realistic in the face of current challenging economic conditions. Overall, the budget presents some conservative and more realistic targets such as expected economic growth, job creation and inflation ZIPAR also welcome the Government’s intention to “develop, publish and implement a robust medium term debt management strategy in 2017”.

In recent days, there has been some confusion about inflation in Zambia. On 27th October 2016, the Central Statistical Office (CSO) announced a 6.4 percentage-point drop in the annual rate of inflation from 18.9% in September to 12.5% in October.

Some commentators have interpreted the drop in the annual rate of inflation as a fall in actual prices. Ordinary Zambians have been confused because when they go to the shops they don’t see falling prices. Far from it, they see prices still going up.

On 18th October, 2015 Zambia united in response to President Lungu's appeal to fast and pray for forgiveness and reconciliation. Many prayed for the country to receive relief from the recent social and economic woes, including the continuously depreciating Kwacha.

To the disappointment of many, the Kwacha, which had closed at ZK11.70 per US dollar the Friday before fell by 2.6 percentage points to ZK12.01 per dollar the Monday after Prayer Sunday. How could this happen after all the earnest prayers?

The Government recently introduced a new mining tax regime in the 2015 national budget and the reverberations of this decision are still being felt as various stakeholders express their reactions. For instance, the Chamber of Mines has warned that the new regime is likely to hit investment.

One of the major mining companies, Barrick Gold, has also warned of the possibility of suspending operations if parliament approves the new tax measures. Barrick claims that the $45million tax they currently pay annually will increase to approximately $150 million.